VAT on online shopping in Saudi Arabia: 15% and your invoice

The rate: 15% since 1 July 2020

Value added tax in Saudi Arabia started at 5%. On 11 May 2020 the tax authority, then called GAZT and now the Zakat, Tax and Customs Authority (ZATCA), confirmed that the rate on all taxable goods and services would rise from 5% to 15% on 1 July 2020, according to the Saudi Press Agency. ZATCA's guidelines published in May 2026 still use 15%, so that is the rate you pay today on almost everything you buy online from a Saudi store.

For a quick check, the VAT inside any VAT-inclusive price is that price × 15 ÷ 115. On SAR 230 it is SAR 30; on SAR 46 it is SAR 6; on SAR 1,150 it is SAR 150. To go the other way, multiply a price before VAT by 1.15: SAR 200 before VAT is SAR 230 to pay.

"Price includes VAT": what the rule actually says

The Ministry of Commerce (MoC) said on 4 August 2020 that the prices shown to shoppers include VAT and are final, and that the price on the tag must match the final invoice. Its own example: an item offered at SAR 100 must not cost more than SAR 100 at the till. If the tag is missing or differs from what you are charged, MoC asks shoppers to report the store on 1900 or through its «بلاغ تجاري» (Commercial Complaint) app. If a store adds VAT on top of a price that already includes it, MoC directs that complaint to ZATCA on 19993. The MoC notice is from 2020; we found no later notice that changes it.

Online, the same idea shows up in store terms. Nana states that its prices include 15% VAT unless stated otherwise. iHerb states that 15% VAT has been included in its Saudi prices since 18 March 2021. Jarir quotes its delivery charges (SAR 29 under 30 kg, SAR 79 over 30 kg) VAT included, and Amazon.sa quotes Prime at SAR 16 a month or SAR 140 a year VAT included.

Watch for one exception in the small print: some stores set thresholds on the amount before VAT. Arabian Oud offers free shipping in Saudi Arabia on orders over SAR 200 before VAT, which means the total you see at checkout has to pass SAR 230. A basket showing SAR 225 looks like it clears SAR 200 but is only about SAR 195.65 before VAT.

VAT, promo codes and delivery fees

ZATCA's invoicing guideline (Version 3, May 2026) says VAT is calculated on the actual value after discounts, and the invoice should show the value after the discount, the discount itself, the tax and the total including tax. In practice, a voucher code lowers the VAT you pay as well as the price. A basket of SAR 460 including VAT holds SAR 60 of VAT. A 10% promo code takes it to SAR 414, which now holds SAR 54 of VAT: you save SAR 46 in total, not SAR 46 plus a separate tax saving.

Delivery is part of the bill VAT is charged on. ZATCA's own sample tax invoice lists "shipping and handling" of SAR 80 with SAR 12 of VAT next to the goods. Saudi stores usually quote the fee with VAT already in it: Nahdi charges SAR 12 including VAT for express items under SAR 150.

Gift cards follow a different rule. Under ZATCA's VAT Implementing Regulations, issuing or selling a voucher is not in itself a taxable supply, and a face-value voucher only becomes one to the extent you pay more than its face value. Buying a SAR 200 gift card for SAR 200 is not where the VAT is charged. How VAT treats cashback credits, such as wallet credits paid after an order, is not covered by any ZATCA page we read, so we mark it not confirmed.

Your invoice: what it must show

Every VAT-registered seller has to issue a tax invoice for every taxable sale. For shoppers this is usually a simplified tax invoice, which may be issued for any sale to a private person, whatever the value, and for any sale under SAR 1,000. At minimum it shows the date of issue; the seller's name, address and tax identification number; what you bought; the amount payable; and either the VAT amount in riyals or a clear statement that the price includes VAT at 15%. It must be issued in Arabic (another language may be added, but the Arabic text is the official one), on the day of the sale or the day you pay, whichever is first, and handed to you on paper or electronically.

One point is not settled. ZATCA's VAT page, in a list of help for small businesses, says a simplified invoice under SAR 1,000 does not need the seller's VAT number, while the May 2026 guideline lists the tax number as a minimum field. We have not confirmed which applies to a given store.

Since 4 December 2021 invoices have been electronic under ZATCA's e-invoicing rules (FATOORA), and simplified invoices carry a QR code. ZATCA's e-invoicing guideline says a customer can scan that code with the ZATCA mobile app to see the invoice's basic information. You can also check whether a seller is VAT-registered with ZATCA's free VAT Registration Verification service, searching by VAT number, Commercial Registration number or VAT certificate number.

Returns, refunds and the VAT you paid

When you return an item and the store accepts it, or the store cuts the price after the sale, ZATCA's rules require the seller to adjust the value with a credit note that refers to the original invoice. For you, that means the refund should include the VAT you paid on the returned item: return a SAR 115 item and the full SAR 115 should come back, not SAR 100. Your rights to return an item in the first place come from the E-Commerce Law, covered in our guide to return and cancellation rights.

Foreign stores, parcels and items with no VAT

Buying from a store that ships from abroad is a separate case. ZATCA says 15% VAT applies to all goods imported into the Kingdom, including goods that are exempt from customs duty. Personal purchases from foreign e-stores are free of customs duty when the total of goods, shipping and insurance is under SAR 1,000, but not free of VAT, which is calculated on everything in the customs declaration: goods, shipping, insurance, any duty and the declaration fees. iHerb collects all duties, taxes and import fees at checkout, and since 6 October 2024 adds a ZATCA customs service fee there; nothing is due on delivery. SHEIN and Temu do not say on the pages we read whether their SAR prices include VAT and customs. Our customs guide covers the thresholds and fees.

A few things carry no VAT or a 0% rate. Qualifying medicines and medical goods are zero-rated, as classified by the Ministry of Health or another competent authority; we did not check which products qualify, so look at the VAT line on your pharmacy invoice. Residential rent is exempt, and so are most financial services, except where a bank charges an explicit fee or commission.

Questions shoppers ask